EPF Account: EPF has many benefits. There are some of these benefits that almost all employees know, but there are also some things that people either do not pay attention to, or are not aware of. Here we are going to tell you 7 such features or benefits of EPF.
EPF Account: If you work, you must have seen your salary structure. From your monthly salary, money goes into EPF (Employees Provident Fund), a scheme run by EPFO. For organized sector employees, retirement corpus is prepared every month with a deduction of 12 percent in EPF. Apart from creating a retirement fund, EPF has many benefits of its own. There are some of these benefits that almost all employees know, but there are also some things that people either do not pay attention to, or are not aware of. Here we are going to tell you 7 such features or benefits of EPF.
1. Pension benefit
Under Provident Fund, your money is deposited in two parts – EPF i.e. Employee Provident Fund and EPS i.e. Employee Pension Scheme. The 12 percent that is deducted from your salary is paid by your company. Pension corpus is prepared from the company’s contribution. However, pension eligibility is available only after the age of 58, and for this there must be a minimum of 10 years of service. The minimum pension amount is Rs 1,000.
2. Benefit of nomination
In the recent past, EPFO has repeatedly asked subscribers to make nominations for this facility. You can make anyone a nominee from your EPF account. On the death of the subscriber, the nominee gets the PF money.
3. Invest in VPF also
Apart from EPF, employees can also invest in VPF i.e. Voluntary Provident Fund. You can make extra contribution from your basic salary in VPF.
4. Rules for withdrawing money
There are many rules for withdrawing money from EPF. It is not that if you change your job, you can easily withdraw money from your EPF account, it is not so. You can withdraw EPF money only when you are not working for two months. Money can also be transferred only when you get a new job.
5. Partial Withdrawal
Apart from this, partial withdrawal also has its own different rules. You cannot withdraw the entire amount, but you can withdraw money up to a certain limit from the account. You can withdraw money for yourself, your siblings, your children’s marriage or education, but after 7 years of opening the account, only 50 percent of the amount can be withdrawn.
Money can also be withdrawn for major surgery or treatment of yourself or someone in your family. To repay the house loan, to build or buy a house. Or you can also withdraw money to renovate the house.
6. Interest on EPF
You get interest every year on EPF, which keeps compounding. Currently the government is giving you annual interest on EPF at the rate of 8.15%. But there is no return on the EPS corpus, you get only the amount of funds you deposit.
7. Life Insurance
If there is no life insurance benefit in a company, then life coverage can be given to its employees under the EDLI (Employees’ Deposit Linked Insurance) scheme. However, there is very little coverage in this.
